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STRATA Skin Sciences Reports First Quarter 2025 Financial Results and Provides a Corporate Update
HORSHAM, Pa., May 14, 2025 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (“STRATA” or the “Company”) (NASDAQ: SSKN), a medical technology company dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, announces its financial results for the quarter ended March 31, 2025, and provides a corporate update.
First Quarter2025 FinancialHighlights
Revenue in the first quarter of 2025 was $6.8 million, up 1%
Global net recurring XTRAC® revenue in the first quarter was $4.5 million vs. $4.6 million in the prior year period, with international growth of 27% offsetting a 4% decline in the domestic market
Average net revenue per domestic XTRAC® system increased to $4,776 (+3% YoY) on 846
Total Recurring revenue increased 1% to $4.7 million in the first quarter
Equipment revenue for the first quarter was $2.1 million, up 1.4% from the year-ago period
Gross margin in the first quarter was 53.5%, up 790 basis points from 45.6% in the prior year period
Operating expenses in the first quarter were $5.7 million, down 5% as compared to the year-ago period
Operating cash flow improved by $254 thousand to negative $550 thousand
Adjusted EBITDA improved by $732 thousand to negative $547 thousand versus negative $1.3 million in the prior year period
Total cash at quarter end was $7.8 million
“STRATA made solid progress in the first quarter in executing our strategic plan,” said Dr. Dolev Rafaeli, STRATA President and CEO. “Along with a modest increase in revenue, we have significantly improved our gross margins, expanding nearly 800 basis points year over year. We have also maintained disciplined cost control resulting in a decline in operating expenses and improvement in our seasonally low first quarter adjusted EBITDA.
“Our existing direct-to-consumer (DTC) strategy continues to strengthen, driving 32% and 128% more unique Psoriasis and Acne patients respectively, as compared to prior year period demonstrating both growing demand and improved marketing efficiency.
“Internationally, we’re building strong momentum. Revenue from international markets grew 8% in Q1 as compared to prior year, following 41% growth in the previous quarter. This segment now accounts for 36% of our total revenue, and we anticipate, once the global tariff uncertainty clears it will continue to grow, adding strong growth to our U.S. business stabilization and growth,” concluded Dr. Rafaeli.
First Quarter 2025 Financial Results
Revenue for the first quarter of 2025 was $6.8 million, an increase of 1% versus the first quarter of 2024. Global recurring revenue of $4.7 million and equipment revenue of $2.1 million in the first quarter of 2025 were each up roughly 1% over the prior-year first quarter.
Gross profit for the first quarter of 2025 was $3.6 million, or 53.5% of revenue, as compared to $3.1 million, or 45.6% of revenue, for the first quarter of 2024.
Total operating expenses of $5.7 million in the first quarter of 2025 declined 5% versus the prior-year period, with engineering & product development down 60%, selling & marketing down 1%, and general & administrative down 5% versus their prior-year levels.
Net loss for the first quarter of 2025 was $2.4 million, or EPS of negative $0.58 per basic and diluted common share, as compared to a net loss of $3.4 million, or EPS of negative $0.96 per basic and diluted common share, in the first quarter of 2024.
Cash, cash equivalents, and restricted cash at March 31, 2025 were $7.8 million.
First Quarter2025 Earnings Conference Call
STRATA management will host a conference call at 5:00 p.m. ET on Wednesday, May 14, 2025 to review financial results and provide an update on corporate developments. Following management’s formal remarks, there will be a question-and-answer session.
To listen to the conference call, interested parties within the U.S. should dial 1-866-524-3160 (domestic) or 1-412-317-6760 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the STRATA Skin Sciences, Inc. conference call.
A telephonic replay of the call will be available until May 21, 2025 by dialing 1-877-344-7529 (or 1-412-317-0088 for international toll callers) and using replay access code 6753445. To access the replay using an international dial-in number, please see here.
A webcast earnings call replay will be available approximately one hour after the live call and remain accessible until September 21, 2025.
Non-GAAP Financial Measures
STRATA has determined to supplement its consolidated financial statements, prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), presented elsewhere within this report, with certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP gross profit, which excludes the non-cash expense of amortization of acquired intangible assets classified as cost of revenues, and non-GAAP adjusted EBITDA, “Earnings Before Interest, Taxes, Depreciation, and Amortization.”
These non-GAAP disclosures have limitations as an analytical tool, should not be viewed as a substitute for Gross Profit or Net Earnings (Loss) determined in accordance with U.S. GAAP, should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. STRATA considers these non-GAAP measures in addition to its results prepared under current accounting standards, but they are not a substitute for, nor superior to, U.S. GAAP measures. These non-GAAP measures are provided to enhance readers’ overall understanding of STRATA’s current financial performance and to provide further information for comparative purposes. This supplemental presentation should not be construed as an inference that the Company's future results will be unaffected by similar adjustments to Gross Profit or Net Earnings (Loss) determined in accordance with U.S. GAAP. Specifically, STRATA believes the non-GAAP measures provide useful information to management and investors by isolating certain expenses, gains, and losses that may not be indicative of the Company’s core operating results and business outlook. In addition, STRATA believes non-GAAP measures enhance the comparability of results against prior periods.
Reconciliation to the most directly comparable U.S. GAAP measure of all non-GAAP measures included in this press release is as follows:
Three Months Ended March 31,
(in thousands)
2025
2024
Net loss
$
(2,432
)
$
(3,368
)
Adjustments:
Depreciation and amortization
1,220
1,249
Amortization of operating lease right-of-use asset
85
95
Loss on disposal of property and equipment
34
13
Interest expense, net
417
479
Non-GAAP EBITDA
(676
)
(1,532
)
Stock-based compensation
129
112
Inventory write-off
-
141
Non-GAAP adjusted EBITDA
$
(547
)
$
(1,279
)
XTRAC Gross Domestic Recurring Billings
XTRAC gross domestic recurring billings represent the amount invoiced to partner clinics when treatment codes are sold to the physician. It does not include normal GAAP adjustments, which are deferred revenue from prior quarters recorded as revenue in the current quarter, the deferral of revenue from the current quarter recorded as revenue in future quarters, adjustments for co-pay and other discounts. This excludes international recurring revenues.
The following is a reconciliation of non-GAAP XTRAC gross domestic billings to domestic recorded revenue for the first quarter of 2025 and 2024 (in thousands), respectively:
Three Months Ended March 31,
(in thousands)
2025
2024
Gross domestic recurring billings
$
4,086
$
4,578
Co-Pay adjustments
(74
)
(80
)
Other Discounts
(4
)
(30
)
Deferred revenue from prior quarters
1,545
1,624
Deferral of revenue to future quarters
(1,513
)
(1,901
)
GAAP domestic revenue
$
4,041
$
4,190
About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company dedicated to developing, commercializing, and marketing innovative products for the in-office treatment of various dermatologic conditions, such as psoriasis, vitiligo, and acne. Its products include the XTRAC® excimer laser, VTRAC® lamp systems, and the TheraClear®X Acne Therapy System.
STRATA is proud to offer these exciting technologies in the U.S. through its unique Partnership Program. STRATA’s popular partnership approach includes a fee per treatment cost structure versus an equipment purchase, installation and use of the device, on-site training for practice personnel, service and maintenance of the equipment, dedicated account and customer service associates, and co-op advertising support to help raise awareness and promote the program within the practice.
Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to launch and sell products recently acquired or to be developed in the future, the Company’s ability to develop social media marketing campaigns, direct to consumer marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory, adverse market conditions labor supply shortages, or supply chain interruptions resulting from fiscal, political factors, international conflicts, responses, or conditions affecting the Company, the medical device industry and our customers and patients in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all these forward-looking statements may prove to be incorrect or unreliable. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. The Company urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.
